The Stock Exchange of Thailand (SET)’s Board of Governors (BoG) has approved a one-year silent period rule for a discount share offering in a private placement (PP), using the same principles of silent period rule as applied for initial share offerings.
Supakit Jirapraditkul, SET’s executive vice president and secretary of SET’s Board of Governors said that SET has been promoting various fundraising tools among listed companies focusing on benefit protections for all investors. Thus, SET’s BoG today approved a one-year silent period rule in share offerings to a private placement at a price lower than 90 percent of its market price. (The market price refers to an average market price dated back 7-15 days before the selling date for PP.) However, one-fourth of the silent period shares would be allowed for trading six months later. The rule adjustment is designed to prolong shareholdings of the new partner for mutual benefits of listed companies and existing shareholders.
Meanwhile, SET can ease such rule for certain cases, such as during a rehabilitation period when creditors agree to a debt-to-equity swap, as well as institutional investors in accordance with the Securities and Exchange Commission (SEC)’s definition, excluding private fund etc. In addition, the rule does not apply to the leftover shares from the rights offering (RO) that has already been exercised by existing shareholders.
This rule adjustment has already passed the hearing process from, listed companies, financial advisors, investors and the capital market’s stakeholders before forwarding to the SET’s Board of Governors. It is expected to apply to PP that has not been called for payment before the effective date. The rule is subject to an approval from the SEC.